Multiplier
FOREX
Key Graphs
Unemployment
Monetary/Fiscal Policy
100
This is the multiplier value when MPC is .8
What is 5?
100
This is what happens to the value of the US dollar when the demand for the dollar decreases.
What is depreciation?
100
What is short run perfect competition?
100
This is a form of unemployment when there are more people looking for jobs, then there are jobs at the current wage.
What is Structural Unemployment?
100
This is who conducts Fiscal policy
What is congress and the president?
200
This is the MPC value if MPS is .75
What is .25?
200
This is what happens to the supply curve of the US dollar when it appreciates.
What is shifting left?
200
What is a negative supply shock?
200
This is the formula for calculating the unemployment rate
What is number of unemployed/Labor force?
200
This is the open market operation that the FED uses to lower interest rates.
What is buying bonds?
300
This is the MPC value if income increased by 10% and consumption increased by 5%
What is .5?
300
What is monopoly profit?
300
This is what happens to unemployment when inflation increases.
What is a decrease in unemployment?
300
This is what happens to interest rates when the FED wants to promote spending.
What is lowering interest rates?
400
This is the amount of government spending needed to close a $200 billion recessionary gap if MPC is .5
What is $100 billion?
400
This is what a country's economy experiences when it has lower interest rates than other nearby countries.
What is capital outflow?
400
These are people who have stopped looking for jobs but are not considered unemployed.
What are discouraged workers?
400
This is the situation that occurs in the loanable funds market when the government borrows a lot of money in order to spend it and increase AD.
What is crowding out?
500
This is the amount of disposable income generated by a 5% tax decrease that makes total tax revenue decreases by $300 billion.
What is $300 billion?
500
This is the theoretical level of unemployment below which inflation would be expected to rise.
What is NAIRU?
500
This is the interest rate that banks charge each other when lending and borrowing occurs.
What is the federal funds rate?